LAV Process Explained: Equipment

Management

Elizabeth ErdmanMedical Equipment and Logistics Solutions Directorate

Naval Medical Logistics Command

Context• Commands can benefit from applying LAV

methodology in support of Audit Readiness

Purpose• Describe the LAV Process for Equipment

Management Objectives• Learn key methods and metrics to review

during a self-assessment

FOR OFFICIAL USE ONLY2

What is LAV? Assist Logisticians to achieve Total Asset

Management (TAM) and improve internal management control of accountable equipment.

Evaluate the effectiveness of the Equipment, Technology Material Management (ETM) processes from materiel procurement planning to eventual property disposal

Evaluate the effectiveness of the Purchasing Management, Acquisition Planning and Requirements Development, and Contracting Officer’s Representative (COR) Programs

The Logistics Assist Visit is NOT an inspection, this is strictly an assist visit to help your staff identify strengths and weaknesses and to provide them with the tools that they need to successfully carry out their mission.

FOR OFFICIAL USE ONLY3

Property Accounting

1. Is there a designated Personal Property Manager?• Forward copies of designation letters to

NMLC

2. Is the delegation letter on file?• Should be readily available

FOR OFFICIAL USE ONLY4

Property Accounting

3. Do PPM personnel have the appropriate training? What percentage?• PPM’s are responsible for scheduling training for EM

staff (those with DMLSS access). Get with your DMLSS-SA to determine who has access, even read-only.

4. What specific training have PPM personnel taken?• Read-only access: DMLSS E-learning• Read/Write Access: DMLSS-EM Basics• Equipment Managers: 5-day off site EM Workshop

5. Is the training documentation on file?• Contact NAVMEDLOGCOM for previous training

documentation.

FOR OFFICIAL USE ONLY5

Property Accounting

6. Are all equipment assets entered into DMLSS and barcoded within 7 calendar days of receipt?• Compare receipt documents with the Equipment

Gain and Loss Report in DMLSS.

7. Is GFE list included in the NPS Contract?• Identify and Collaborate with your Command’s

COR’s

8. Are loaned equipment assigned to contractors by name and with a return date no later than the end date of their contract?• Run BO Report to determine GFE list

FOR OFFICIAL USE ONLY6

Management Control Reports

9. Is the site reviewing management control reports on a monthly basis?• Monthly Capital Asset Balance Report• Monthly Capital Depreciation Report• System and Components Report• Daily Document Transaction Register• Equipment Transfer Report• Equipment Gain and Loss Report• Equipment Requiring Data for a UII• Reported Excess Equipment

FOR OFFICIAL USE ONLY7

Inventory Auditing

FOR OFFICIAL USE ONLY8

Criteria Number of Errors

Total Items Inventoried

Error Rate

Procurement Documentation not on file

5 50 10%

Incorrect Nomenclature

6 50 12%

Acquisition Cost does not match receipt documentation

4 50 8%

Incorrect Barcodes 2 50 4%Incorrect Locations 15 50 30%Incorrect Custodians 7 50 14%Incorrect Serial Number

2 50 4%

Records over $5,000 without IUID label affixed

4 20 25%

Book to Floor Errors 1 51 N/AFloor to Book Errors 1 51 N/AInventory Accuracy Error

2 51 4%

Inventory Auditing

Avoid the Texas Sharpshooter Fallacy:• Identify records at random from your

DMLSS • Could be items $25K and greater

FOR OFFICIAL USE ONLY9

Equipment Management

11. Equipment Replacement• Do users provide input? How? How is it

documented?• Is there an EPRC? How often does it meet?

Can you provide meeting minutes?• Is there a prioritized listing of OP & O&M

requirements?• Does the Command project requirements out

at least 5 years?

FOR OFFICIAL USE ONLY10

Equipment Management

12. Leased Equipment• Is leased equipment used at your facility?• Is a CBA performed when equipment is

$100K or greater?• Lease determination worksheet on file?• Leased equipment meeting the accountability

criteria recorded in DMLSS?• Leased Medical Equipment, regardless of

cost, recorded in DMLSS?

• Emergency Management Plan for resource sharing?

FOR OFFICIAL USE ONLY11

Equipment Management

13. IT Security• Is patient health information (e.g. name, SSN,

medical/treatment information) removed from ADP and medical equipment memory before disposal?

• Is equipment containing HIPAA PHI secured at all times, with strong password protection implemented and enforced?

14. Are Systems recorded in DMLSS using system/component relationship?• Review Canned Management Report

15. Is excess equipment reported to NMLC via DMLSS?• Review Canned Management Report

FOR OFFICIAL USE ONLY12

Policies and Guidance

16. Is there a local Command Equipment Management Plan (SOP)?• Is it reviewed annually?

17. Does the Command have copies of current guidance and procedures? Have the appropriate staff reviewed the guidance?• NAVMED P-5132, SECNAVINST 7320.10a,

BUMED FIP SOP, FY12 Logistics Guidance

FOR OFFICIAL USE ONLY13

Documentation

18. Are signed DD200’s on file for all items listed as missing, damaged, lost, stolen?• Compare transaction history with physical

documentation

19. Are disposal documents maintained for at least 36 months for items disposed or transferred?• Compare transaction history with physical

documentation

FOR OFFICIAL USE ONLY14

Management Review

20. Unable to Locate (UTL)• Are all UTL equipment reported to the Safety

Committee?• Are these reports documented in the meeting minutes?• Are EM and responsible departments documenting

actions taken to locate UTL equipment?• Are DD 200’s being initiated by department heads on

equipment that cannot be located for more than 30 days?

***Partnership with BIOMED is critical for management of UTL

FOR OFFICIAL USE ONLY15

Review

• Ensure personnel are trained and appropriately privileged in DMLSS.

• Ensure PPM and RO’s are assigned in writing and current in DMLSS.

• Review Canned Management Reports in DMLSS.

• Conduct inventory sampling to assess your inventory accuracy, valuation information accuracy, and documentation completeness.

FOR OFFICIAL USE ONLY16

ETM POCs

Program Manager• Edlouie Ortega – ETM SupervisorAnalytics/Equipment Management • HM1 Sherwin Villagracia – Data Quality

Management• Elizabeth Erdman – Inventory Management/LAVEquipment Management• HA Denise Matamoro – Property Accounting

Support

NMLC-ETM@med.navy.mil BUMED-PMO@med.navy.mil

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Related Sessions

• Material Management Self Assessment – Conduct Your Own LAV

• Equipment Management Self Assessment – Conduct Your Own LAV

• Equipment Management Process

FOR OFFICIAL USE ONLY18